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It's not leverage that limits your gains but the fact that you're short. There is a barrier beyond which you cannot progress on the downside: 0.

Unless your timeframe is infinity and the market never ever drops again, then going long has its limits as well.

The easy shorts have been played. You're in risky territory now. I'm not saying do this or don't do that. I'm just saying keep an eye out and don't tell your friends you're a genius until you lock in your gains.

About six weeks ago I was sure the bottom was here and went long. It didn't seem so risky. The bull call credit spread I just did for a quick 10% was much less risky, mainly because I am no longer married to a direction. I think it's much *less* risky that way...
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